There are some particular circumstances in which the bank, tax department or mortgage company has the right or ability of releasing a portion or small part of the collateral or pledged property to the owner or buyer of the lien property. This is known as the partial release of the collateral to the owner or buyer.
Introduction to the Partial Release of Lien Certificate:
There are many reasons for which the owner of a property doesn’t pay or can’t pay the tax payments or mortgage installments to the bank or mortgage company. In this situation when a particular property has debt, the creditor has the legal right and obligation to take the property away from the owner and find someone else, who is willing to buy the property and will cover the debt. In order to transfer the property to the new owner, an agreement is signed which is also known as the lien certificate for real estate property. When the owner is given a certain part of the property but not the entire property, the lien certificate of partial release is issued to the buyer in order to enable him to claim his ownership on the released part of the property.
Brief description of Partial Release of Lien Certificate:
When a bank, Mortgage Company, or the tax and revenue department takes away a certain property from the owner due to underlying debt on the property, the take away the ownership documents too in order to stop the owner from selling the property to someone else illegally. These documents are used for the auction or bidding of the property and when a person wins the property in the process and proves that he can buy the property and pay for the outstanding debts, he is given the ownership of the property with issuing lien certificate. The common lien certificate indicates that the buyer has every right on the entire property and he can do whatever he wants with it where in some particular situations, only a portion or a small part of the property is released to the new buyer or original owner. In this situation, partial release of lien certificate is released to the owner or buyer that indicates the ownership of the said person on a small portion of the property.
Key elements to include in the Partial Release of Lien Certificate:
- Name of the person who is the actual owner of the property
- Name of the person who is claiming the lien property
- Date when the property was taken by the bank, tax department or mortgage company
- Details of authority or department who is taking the property (i.e. tax department or mortgage company)
- Reasons for the lien of the property (i.e. tax payments or mortgage loan payments)
- Date when the auction or bidding was held in order to sell the property
- Name of the person who won the auction or bidding
- Part of the property that is being released to the buyer
- Transfer deed of the property for the ownership
- Terms and conditions of the lien certificate
- Validation and expiration of the lien certificate
- Signature of the authorized person
Here is preview of a Free Sample Partial Release of Lien Certificate Template created as fill-able PDF Form,
Here is download link for this Partial Release of Lien Certificate Template,